Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in freight audit

 

 

b2ap3_thumbnail_dreamstime_l_26568438.jpg

Many manufacturers and retailers throughout North America spend millions of dollars a year on freight transportation. Freight costs can represent between 1 and 10 percent of a company’s operating revenue, one of the largest cost items.  They are often treated as a necessary evil. From time to time a shipper may try out a new mode of transport, a new carrier or conduct a freight bid. Other than that, freight programs tend to remain fairly static from year to year.

During our years of consulting with shippers all over North America, we have observed a pattern of Best Practices that elevate certain shippers and companies above their peers. Employing these Best Practices allows these companies to reduce freight costs and improve profitability. One of the best ways to find out where a company stands in the area of Freight Management is to conduct a Transportation Audit. It is our view that shippers with a freight budget in excess of $1 million should periodically conduct an independent audit of their freight programs. Just as businesses audit their accounting practices, looking for opportunities for improvement, Transportation departments should do so as well. You might be amazed at what you find.

...
Hits: 1046
0
Continue reading 0 Comments

For the past several years, American Shipper, in partnership with the Council of Supply Chain Manage­ment Professionals (CSCMP) and Retail Industry Leaders Association (RILA), has successfully benchmarked more than 250 payers (shippers and 3PLs) on their transportation invoice processing and payment practices and systems. Participants completed a 28-question survey covering all modes of international and domestic freight transportation.  The report focused on transportation spend in three segments—procurement, execution and settlement.  Here are some of the major findings and recommendations.

The 6 Key Invoice Processing Functions

The report looked at the six key functions of invoice processing.  They include Invoice Receipt, Validation, Dispute Resolution, Approval, Payment and Audit.  The study found that about a quarter of the respondents outsourced the receipt and validation functions while over 40 percent use automated tools; the remaining 30 percent of the respondents process their invoices manually.

Two thirds of respondents use manual processes to resolve billing disputes.  Forty-five percent of respondents approve invoices manually while 42 percent approve them electronically.  The remainder are approved through a third party.  In fifty-three percent of the cases, the invoices are paid electronically while about a quarter are paid manually and another quarter are paid through an outsourced provider. 

Forty-five percent of the invoices are audited manually while 29 percent are done electronically and 26 percent are audited through a third party. The majority of shippers automate, or outsource the receipt and validation of invoices while dispute resolution remains highly manual.

...
Tagged in: freight audit
Hits: 10553
0
Continue reading 0 Comments

Most Recent Posts

Search


Tag Cloud

CP Rail Leadership MBA Business skills FCPC shipping automation Truckload Stephen Harper Trade Vision Load broker freight transportation conference the future of transportation Inbound Transportation FMCSA Canadian economy home delibery APL Yield Improvement marketing Harper Davos speech Freight Recession transportation news Canada's global strategy mentoring capacity shortage Loblaw Canadian Transportation & Logistics 2013 Economic Forecast Accessorial Charges Dan Goodwill Driving for Profit freight transportation TMP Worldwide Freight Management peak season LCV's Sales Training US Election Global experience robotics Associates Scott Monty Adrian Gonzalez Hudsons Bay Company Social Media in Transportation Werner shipper-carrier collaboration Rail freight costs Fire Phone Trucking dimensional pricing Software Advice Transplace Railway Association of Canada trade natural disasters Doug Nix KCS New York Times Surety bond future of freight industry Management Muhammad Ali Wal-Mart autonomous vehicles Freight Rates Transport Capital Partners (TCP) drones last mile delivery freight transportation in 2011 Crude Oil by Rail ShipMax cheap oil US Economy trucking company acquisitions FCA Dedicated Trucking 360ideaspace FuelQuest Dedicated Contract Carriage University of Tennessee freight agreements Twitter Crisis management Carriers coaching Cleveland Cavaliers broker bonds customer engagement truck drivers freight payment freight payment freight audit Politics rail safety fuel surcharge Freight Shuttle System Retail Global Transportation Hub truck driver TMS economic forecasts for 2012 Entrepreneur pipelines business start-up LinkedIn transportation newspaper Facebook EBOR Canada-U.S. trade agreement YRC Broker TransForce Social Media Training Freight contracts UP freight rate increases Freight Matching e-commerce CSX 2012 Transportation Business Strategies. Jugaad Blogging Packaging Bobby Harris JB Hunt dynamic pricing Sales NAFTA Canadian freight market Retail transportation Grocery Map-21 small business 3PLTL Canadian truckers Rate per Mile Regina Otto 2014 economic forecast US Auto Sales professional drivers Conway Reshoring freight broker Rotman School of Business Right Shoring solutions provider online shopping Toronto buying trucking companies tanker cars Load Boards driver shortages supply chain management MPG Deferred Packaging intermodal Canada U.S. trade NS Donald Trump routing guide $75000 bond Canada freight forwarders LTL Emergent Strategy Warehousing Whole Foods President Obama consumer centric BlueGrace Logistics FMS CITA Shipper Pulse Survey Driver Shortage Finance and Transportation USA Truck freight audit Shipper Failure Business Strategy Search engine optimization Education Celadon broker security Success Swift transportation audit 2015 Economic Forecast Life Lessons Tracy Matura 2014 freight forecast NCC shipper-carrier roundtable risk management Sales Management freight cost savings Transportation Distribution RFP NMFC US Manufacturing David Tuttle freight bid Transportation Buying Trends Survey Spanx ProMiles Colilers International CSA scores Amazon Doug Davis freight RFP economy financial management Training New Hires Ferromex bulk shipping Microsoft Outsourcing Sales hiring process Transportation service CN Rail carrier conference Freight Carriers Association of Canada Omni Channel shipping wine driverless Transcom Fleet Leasing Job satisfaction Business Transformation Strategy Horizontal Supply Chain Collaboration 2014 freight volumes 3PL Consulting capacity shortages Comey Schneider Logistics Success failure entrepreneur Keystone Pipeline CRM derailments Infrastructure energy efficiency network optimization US Housing Market Derek Singleton Masters in Logistics Trump Freight Career Advice CN employee termination shipper-carrier contracts BNSF driver Climate Change Transloading Freight Capacity home delivery CSA IANA selling trucking companies

Blog Archives